Why appraisals are the weakest mortgage link

Future-Proof: Navigate Threats, Seize Opportunities at ICNY 2018 | Jan 22-26 at the Marriott Marquis, Times Square, New York

A few weeks ago I ran into one of my favorite mortgage brokers at a local coffee shop. I would reveal his name but then all the other mortgage brokers in town will want equal publicity. We soon got to talking about the booming mortgage business. He revealed, "Confidentially, Bob, I've never had such a good year, and 2004 isn't over yet." Then he told me his business is about 50-50 between home purchases and mortgage refinances. Purchase Bob Bruss reports online. When mortgage interest rates rose a bit a few months ago, he said he and his wife were planning to take a long vacation, thinking the mortgage business would drop off. But then he revealed his business actually increased after the interest-rate spike, and then increased again when mortgage interest rates dropped, so he couldn't afford to take a vacation and lose business. Then he made a statement I wasn't expecting. "If it wasn't for those 'darn' appraisers the lenders tell me I have to hire, my business would be perfect." ...